Maybe we need some business-head accountant-like IT member to step in and 'splain & clarify this a little better than I can, but the one-size-fits-all word of "cost" or "costs" can be further divided into:
DIRECT COSTS - Expenses generated by a single project, in this case, a film. Permits, film festival entry fees, DVD prints, promotion & advertising, unique costumes and props, one-time-use-only special effects (like fake blood), payment for services rendered, gas & travel, craft services, etc.
Things that cannot be utilized for more than one film project.
INDIRECT COSTS - Commonly referred to as overhead, these expenses are amortized (spread out) across multiple projects. Reusable costumes (cop/lab coat/gas mask) and props (weapons usually), camera(s), audio capture, recording media (somewhat), lights/reflectors, computer w/ editing software, etc.
Things easily used on multiple film projects.
Volunteer labor and common,
found objects (ubiquitous cell phone or cigarette lighter) with no assignable expense are not recognized even though they do present value to the film project.
Depending upon if a filmmaker is making a one shot deal film project or is a production team making serial projects, expenses can be perceived differently.
Mom & Pop/Student/Avid Amateur with Buddies! with a single or first project may (inaccurately) recognize only direct costs unique to the project (festival DVDs, DIY PVC camera jib & boom pole) while not attributing indirect costs for things used otherwise (home computers with free/inexpensive software, household lamps, drive to HomeDepot/Lowe's).
Serial Film Project Enthusiasts/Filmmaking Novices plunk down cash for tailored NLE equipment and software, various airsoft prop weapons, maintain a box or closet of zombie costumes, etc, all in addition to the above mentioned direct costs.
Pre-Pro/Pro run projects too big to rely on convenient scheduling of noticeable talent for a project to gel on multiple locations in any sensible time frame. Financial incentives become favorable opportunity costs to get talent to block out time dedicated to the film project. DP, audio capture, set designers, transportation for cast/crew/equipment, SFX teams, location scouting and permits, post production FX, editors, score, actors & extras, marketing, etc.
FWIW, I find it
frustrating that this community all openly recognize objects such as 5D v. GF2, DR100 v. H4n, or 8GB RAMM w/ 1.5T storage v. 16RAMM w/ 1T internal + 1T external but routinely fail to understand at what playing level each other is at to tailor answers appropriate for those seeking perspective.
Q: Where the h3ll does the money go?
A: Depends upon what you're doing and how your counting it (or not counting it).
Q: Why won't festivals accept my 90min feature? It looks great! I shot it with a 7D+VideoMic.
A: I dunno. How does it sound? Is it color corrected? Let's see a sample of some acting/lighting/editing.
Q: Okay, festivals won't take it, but neither will NetFlix. And the DVDs ain't flying off the shelf either. What gives?
A: What are you doing for P&A? Maybe it just plain suxaweenie. Show us your trailer.